Accounting Preparing Journal And Balance Sheet Homework Help
- July 27, 2017
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- Category: Accounting QA
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The Woody Shore Company opened their doors to the business on August 31, 2013. The company incurred the following transactions during August 2013.
August 1 The owners deposited $87,000 into the business
August 2 Purchased supplies on credit, total $800.
August 2 Company purchased a 12 month insurance policy for their business $3,600
August 3 Paid rent for their office $2,800
August 5 Purchased equipment for $15,000 paid cash of $3,000 and signed a note with the bank for the remaining balance.
August 9 Completed service for customers and issued invoices, $7,500
August 14 Automobile expense for the company was $825
August 15 Received cash from customer for services provided $2,800
August 18 Paid monthly salary for the employees $4,000
August 22 Paid first installment for note on August 5, 450
August 25 Paid $300 on amount due from August 2
August 30 Customers from August 9 sent you cash for $3,000
August 31 Owners withdrew $2,100 from the company
Required
1. Prepare the journal entries for the above transaction using the accounts in the Chart of Accounts; Cash, Accounts Receivable, Supplies, Prepaid Insurance, Equipment, Accounts Payable, Notes Payable, Capital, Owners Withdrawal, Insurance Expense, Rent Expense, Automobile Expense, Salary Expense .
2. Create T accounts for all of the accounts and post the journal entries into the proper accounts.
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3. Compute the ending balances for each T Account.
4. Prepare a Trial Balance as of August 31.
5. Prepare the Income Statement, Statement of Owners Equity and the Balance Sheet for the month of August 2013.
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